ECON 103 Lecture Notes - Lecture 1: Marginal Utility, Information Revolution, Human Capital
24 May 2017
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Document Summary
It is universal: eg; i want a brand new iphone 6 but i"m unable to get the new iphone 6, nb: scarcity is why economic questions arise because of our inability to satisfy all of our wants. Constraints such as time, money contribute to scarcity we face. Bill gates can get mostly anything he wants but he"s limited because of the scarcity of time that he has: because we cant get everything we want we must choose between alternatives. Eg; you cant go to work and go to the concert that falls on the same time. Incentive: a reward that encourages an action or a penalty that discourages an action, eg; prices act as an incentive. Price of a laptop is too high, more will be offered to be sold than the amount of people who want to buy. Study of the choices individuals and businesses make and the way these choices interact in markets, and the influence of governments.
